Promsvyazbank completes Dutch auction tender for three series of notes

By Jennifer Chiou

New York, Feb. 12 – OJSC Promsvyazbank announced the close of PSB Finance SA’s modified Dutch auction tender offers for up to $250 million of three series of notes.

The offer ended at 11 a.m. ET on Feb. 11.

The company accepted tenders for the following:

• $23,988,000 of the $189,052,000 of outstanding 11¼% loan participation series 4 notes due 2016, the purchase price of which is $991.25 per $1,000 principal amount;

• $53,457,000 of the $400 million of 8½% loan participation series 6 notes due 2017, the purchase price of which is $970 per $1,000 principal amount; and

• $33.09 million of the $484.54 million of outstanding 10.2% loan participation series 7 notes due 2019, the purchase price of which is $850 per $1,000 principal amount.

Holders also will receive accrued interest to the Feb. 13 settlement date.

The notes were issued for the purpose of financing a corresponding loan to Promsvyazbank.

As reported, the minimum purchase prices were set as $990 for the 11¼% notes, $950 for the 8½% notes and $800 for the 10.2% notes.

The company said that the accepted securities will be canceled.

As stated, the purpose of the offers is to allow the borrower “to deem certain of its outstanding loans from the offeror to be prepaid, in an amount corresponding to the aggregate principal amount of notes purchased by the offeror pursuant to the offers, which is reflective of the borrower’s liquidity position and consistent with its ongoing liability management objectives.”

Promsvyazbank already said it will continue to look at opportunities to buy back debt based on factors such as its borrowing costs and the overall remaining tenor of its debt portfolio.

J.P. Morgan Securities plc (44 20 7134 2468, attn.: liability management, em_europe_lm@jpmorgan.com) and Societe Generale (44 20 7676 7579, liability.management@sgcib.com, attn.: liability management) were the dealer managers.

The tender agent was Lucid Issuer Services Ltd. (44 20 7704 0880, promsvyazbank@lucid-is.com, fax: 44 0 7067 9098, attn: Victor Parzyjagla).

Promsvyazbank is a Moscow-based lender. The bank announced the offer on Feb. 4.

© 2015 Prospect News.
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